Title Commitment
The document that sets out what the title company found and the terms on which it would insure title.
01
What It Means
A title commitment is the title company's written statement of the conditions under which it will issue a title insurance policy. It generally identifies the proposed insured, the policy amount, how title is currently vested, requirements that must be satisfied before closing, and exceptions that the policy would not cover.
Requirements are the items that must be handled — payoffs, releases, signatures, entity documentation. Exceptions are the matters that will remain, such as recorded easements, mineral reservations, and taxes not yet due.
02
Why It Matters
The commitment is one of the most informative documents in a transaction. Reading the exceptions, and then the recorded documents behind them, is how buyers learn what actually runs with the land.
Most contracts allow a defined period to review title and raise objections. Understanding the commitment early protects that timeline.
03
Common Misconceptions
- "The commitment is just paperwork for the lender." It is written for the buyer's benefit as much as the lender's, and the exception list often affects use of the property.
- "If the summary looks routine, the documents will too." Exception summaries are brief by design; the recorded instruments contain the actual terms.
- "A commitment is a policy." It is a conditional offer to insure, not the policy itself.
04
Questions to Ask
- Which items are requirements, and who is responsible for clearing each one?
- Can you send the recorded documents for every exception listed?
- What deadline do I have to review title and raise objections?
- Which exceptions can be removed, and how?
- What endorsements are available for this property type?
05
Related Reading & Resources
The most successful real estate decisions often involve collaboration between several professionals working toward the same goal. Understanding each person's role helps you ask better questions and make more confident decisions.
06
Other Title Terms
- Title SearchThe research process that traces recorded ownership and identifies documents affecting a property's title.
- Title InsuranceCoverage designed to protect against certain covered defects in title that existed before the policy was issued.
- Owner's PolicyThe title insurance policy that protects the buyer's ownership interest rather than the lender's loan.
- Lender's PolicyThe policy a lender requires to insure the validity and priority of its lien.
- EscrowThe neutral holding and disbursement of funds and documents according to the parties' written instructions.
- ClosingThe point at which documents are signed, funds are disbursed, and ownership transfers.
Questions About the Closing Process?
Closing on a property involves many moving parts, from title research and escrow to signing documents and recording ownership. I'd be happy to help you understand the process, answer your questions, and connect you with experienced title professionals as you prepare for your transaction.
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